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Human iPSCs (TkDA cell-line) were differentiated on laminin coated plates into endoderm by treatment of Activin and BMP, then treated with FGF4 and CHIR to further differentiate into posterior foregut. The cells were embedded into Matrigel droplets and cultured in Advanced DMEM. Droplet media was collected for ELISA to measure Albumin concentrations. The droplets were collected for histology and RNA isolation to test for AFP, ALB, and HBG1 genes. These methods resulted in the creation of a novel culture system containing both hepatic and hematopoietic lineage cells to model developing fetal liver.